The New Nation - Internet Edition

Xinhua, Jakarta

Indonesia plans annual shipments of up to 5 million tons of liquefied natural gas (LNG) to Japan after their current contracts end in 2010, despite the country's plan to sell more of its gas domestically, local press said on Friday.

State-owned oil and gas company Pertamina, which handles sales of the country's LNG, will ship about 2 million tons of the total 5 million tons from the Senoro LNG plant in Central Sulawesi, reported English daily The Jakarta Post Pertamina deputy president director Iin Arifin Takhyan said Japan-based company Mitsubishi is a majority shareholder in the Senoro LNG project, with a 51 percent stake. Japan had demanded Indonesia guarantee the continuity of its LNG exports as part of the Economic Partnership Agreement signed by President Bambang Susilo Yudhoyono and Japanese Prime Minister Shinzo Abe early last week.

Under the current contracts, Indonesia ships 12 million tons a year to Japan. Iin, who heads the negotiation team for the extension of LNG export contracts with Japan, said with Indonesian gas production limited due to a lack of new findings and aging fields, it was important for the government to prioritize the domestic gas market

However, he said Pertamina was still open to more negotiations on the amount of gas that would be exported and at what price. Of Indonesia's total annual LNG exports of 24 million tons, 12 million tons go to Japan.